Four large US banks fail stress tests
Source: AFP
Citigroup was one of four large US banks that flunked stress tests aimed at seeing how they would hold up in a new economic crisis, Federal Reserve data showed Tuesday.
Three others -- Ally, Suntrust and MetLife -- also failed the tests, while 15 other large bank holding companies passed the exercise, the Fed said.
As a group, though, the 19 came through strongly, said the Fed, thanks to pressure for them to boost capital over the past three years as the financial sector digs its way out of the deep 2008-2009 recession.
"In fact, despite the significant projected capital declines, 15 of the 19 bank holding companies were estimated to maintain capital ratios above all four of the regulatory minimum levels under the hypothetical stress scenario," the Fed said.
Read more: http://news.yahoo.com/citi-ally-suntrust-metlife-fail-stress-tests-205649742.html
I am surprised that Bank of America received a passing grade.
mahatmakanejeeves
(57,606 posts)I have my dental insurance with them. How did they get to be a bank?
pkdu
(3,977 posts)MaineDem
(18,161 posts)Deregulation, I guess.
truthisfreedom
(23,155 posts)We are deeply disappointed with the Federal Reserves announcement, Kandarian said. We do not believe that the bank-centric methodologies used under the CCAR are appropriate for insurance companies, which operate under a different business model than banks.
http://www.bloomberg.com/news/2012-03-15/metlife-s-capital-austrian-lending-kinnucan-pleads-compliance.html
Lawlbringer
(550 posts)by like 1/10th of a percent, or something like that. While that seems like a small number, that 1/10th of a percent is more money than I'll ever see in my lifetime.
99th_Monkey
(19,326 posts)Very telling that these so-called stress tests amount to pure posturing and should not be taken very seriously.